Depreciation for AMT and State

Question

Hello all. 
 I am adding assets to a new company, I want to make sure I have the conventions right. For the 5 and 7 year equipment, this is what I have: 
 
 Tax MA 200 MACRS 200% DB with 168/179 bonus 
 
 AMT MA 150 MACRS 150% DB with 168/179 bonus 
 
 STATE MF 150 MACRS 150% DB without bonus 
 
 My big question is for state (with all the bonus removed), is MF150 the correct convention rather than MF200? There was another post and answer that pointed to page 329 in the 2009 Master Depreciation Guide, which was helpful, but cannot locate it at the time of this post. Since the assets are all PIS in 2016, 50% is the appropriate sec 168/179 percent, right (not for state, but for Tax and AMT)? 
 
 One more question: for the switch from MACRS to SL, does FAS have this baked in to the MA200 (or MA150 etc) convention, or would I have to manually switch the conventions to SL myself at the optimal time? 
 
 Thank you in advance, I have found this forum absolutely essential. 
 
 -William

Delray · Answer

Hello William L, 
 
A lot has changed in the Tax code since 2009 - probably the most important is that the 168 allowance was not enforced in 2009 and the old MF200 in Tax and MF150 in AMT were back as the defaults. 
 
When the 168 special depreciation is active, there is not am adjustment between Tax and AMT (See page 7 4562 Instructions)even if you opt-out of taking the 168 allowance. In your example Tax and AMT both should be MA200 for assets Placed into service after 1/1/2010 - 12/31/2019. 
 
As for the State book, I really cannot say since it depends on your State. MF200 is what I normally see out there but there is always variations.

Delray · Answer

For the addition - I am not sure what you mean by MACRS to SL. There is a way to either apply or remove the 168 allowance (See: How to apply 168 allowance? ) but if you are attempting to change it from the MF or MA 200/150 to MF or MA 100, AD or SL, that would need to be done on an Asset-by-asset basis.

Delray · Answer

Hello William, 
 
Yes, AMT and Tax would be the same. 
 
As for the Section 1250 Property - Correct me if I am wrong, and since I am not an accountant, I could be, but aren't those usually Property Type R? If so, then the depreciation method would be MF or MA 100 (MACRS SL) or AD if elected. Those are the straight line Tax methods in the program. 
 
Are you trying to say you have a bunch of these Section 1250 Properties entering incorrectly? In that case, yes, those changes would need to be made asset by asset.

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